Assume the following information: Current spot rate of Australian dollar = $.64 (.9650) Forecasted spot rate of Australian dollar 1 year from now = $.59 (.8896) 1-year forward rate of Australian dollar = $.62 (.9348) Annual interest rate for Australian dollar deposit = 9% Annual interest rate in U.S. = 6% Given the above information, the return from covered interest arbitrage by a U.S. investor with $500,000 to invest is: ________. a. 6 % b. 9% c. 7.33% d. 8.14% e. 5.59%

Answer is E but want formula and work of how to do it.